Benefit News

This Legislative Update is a reminder that May 1, 2017 is the deadline for employers subject to San Francisco's Health Care Security Ordinance (HCSO) and those covered by San Francisco's Fair Chance Ordinance to file an annual report (2016 Employer Annual Reporting Form) to substantiate compliance with these ordinances for 2016.

Summary of Reporting Requirements

The 2016 Employer Annual Reporting Form includes a section for those employers subject to San Francisco's Fair Chance Ordinance. Thus, all employers covered by either the Fair Chance Ordinance or the HCSO will use the 2016 Employer Annual Reporting Form (available at https://etaxstatement.sfgov.org/olse/ ) to satisfy these reporting requirements.

In addition, the 2016 Employer Annual Reporting Form includes a survey that must be completed regarding compliance with the Paid Parental Leave for Bonding with New Child Ordinance, San Francisco's paid parental leave ordinance, a new law that took effect on January 1, 2017 for employers with 50 or more employees, with phased-in effective dates of July 1, 2017 for employers with 35 or more employees, and January 1, 2018 for employers with 20 or more employees. Government employers are exempt.

Covered employers who fail to submit the 2016 Employer Annual Reporting Form can be subject to a penalty of $500 per quarter.

Overview of Ordinances

HCSO

Employers are covered by the HCSO during 2016, and thus subject to the 2016 annual reporting requirement, if they satisfy all of the following three requirements:

They employed one or more workers who performed work within the geographic boundaries of the City and County of San Francisco in any calendar quarter during 2016; and

They are a for-profit business with 20 or more persons who performed work in any calendar quarter during 2016, or a nonprofit business with 50 or more persons who performed work during any calendar quarter during 2016 (regardless of where the persons are located); and

They are required to obtain a valid San Francisco business registration certificate pursuant to Article 12 of the Business and Tax Regulations Code.

The following employers are not covered by the HCSO:

A private employer that employed fewer than 20 persons (including those employed outside of San Francisco) in each of the four calendar quarters of 2016; or

A non-profit corporation that employed fewer than 50 persons (including those employed outside of the City) in each of the four calendar quarters of 2016; or

Employers that had no covered employees in San Francisco during 2016.

Employers who were not covered by the HCSO in any quarter of 2016 are not required to complete the 2016 Employer Annual Reporting Form. They do not need to notify the City that they were not covered; no further action is required.

Fair Chance Ordinance

The Fair Chance Ordinance is codified in Article 49 of the San Francisco Police Code and Chapter 12T of the San Francisco Administrative Code, and applies to employers in the City and County of San Francisco with 20 or more employees worldwide, as well as City contractors, and housing providers. The ordinance specifically requires covered employers to review an individual's qualifications before inquiring about that person's arrest and conviction record(s) and related information, as well as require that they limit the use of criminal history information and follow certain procedures and restrictions when inquiring about and using that information.

Paid Parental Leave Ordinance

The Paid Parental Leave Ordinance requires covered employers to provide supplemental compensation to employees who are receiving California Paid Family Leave benefits to bond with a new child, so that the employees receive up to 100% of their normal weekly wages during 6 weeks of parental leave. In general, to receive this supplemental compensation, employees must have been employed by their covered employer for at least 180 days before the start of the California Paid Family Leave benefit payment period, worked at least 8 hours per week, of which at least 40% of an employee's weekly hours must be for work performed in San Francisco, and applied for and received California Paid Family Leave benefits from the State Employment Development Department.

Where To Get More Information

Helpful information regarding these ordinances can be obtained by accessing the following links:

Burnham Benefits does not engage in the practice of law and this publication should not be construed as the providing of legal advice or a legal opinion of any kind. The consulting advice we provide is intended solely to assist in assessing its compliance with the Patient Protection and Affordable Care Act and other applicable federal and state law requirements, and is based on Burnham Benefit’s interpretation of federal guidance in effect as of the date of this publication. To the best of our knowledge, the information provided herein, and assumptions relied on, are reasonable and accurate as of the date of this publication. Furthermore, to ensure compliance with IRS Circular 230, any tax advice contained in this publication is not intended to be used, and cannot be used, for purposes of (i) avoiding penalties imposed under the United States Internal Revenue Code or (ii) promoting, marketing or recommending to another person any tax-related matter.

Burnham is a modern employee benefits and insurance services company. We apply a unique blend of expert knowledge, unmatched personal service and proactive planning to create proven strategic solutions and promote a culture of wellness for our clients.

Burnham is a certified B Corp, a designation reserved for companies who reflect not just the desire to be the best in the world, but the best for the world.